Robyn Galloway Robyn Galloway

Fees situation leads to ‘concerning mental state’

There appears to be a lack of understanding in some tourism and travel industry sectors on the collective right to charge administration/cancellation fees during a force majeure, according to Robyn Galloway, MD of Innovative Travel.

She says this is leading to a concerning mental state within the industry. ‘Our industry needs to be better equipped in understanding our rights, so as to more effectively communicate the reason for fees to clients,’ Galloway adds. ‘Under New Zealand law, the original ‘frustrated contract’ law, was first passed in World War II. With NZ and other countries declaring a State of Emergency, and international borders closing, the ‘frustrated law’ makes it clear, that if contracted services cannot be delivered, due to a force majeure which is beyond either parties’ control, there is the right to claim reasonable costs, including a share of overheads, prior to refunding client’s money.’

Galloway is encouraging the trade to visit http://www.legislation.govt.nz/act/ public/1944/0020/latest/whole.html to understand more about rights during this time. ‘Under a National State of Emergency, the travel industry has been singled out for not operating as if it is business as usual. Whilst we don’t have any specific claims, we feel concern for some colleagues who for years have provided outstanding services for their clients. It would appear that when the PM made a request for us to be kind to everyone, there was some kind of special disclaimer for the travel industry. ‘Now is time to better understand our rights as a service sector. I also urge those involved in the travel industry to email local MPs to request that the sector, which creates local jobs in many communities, continues to be supported financially by the Government. If not, between $700 million and a billion dollars of locally earned commissions which support NZ jobs and our economy, will go offshore.’ Galloway is offering her personal support to industry colleagues – robyn@innovativetravel.com

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